Palisades Tax Increases Expected Next 2 Years

Palisades taxpayers, who saw a 4.2 millage increase several months ago, will more than likely experience tax hikes for the next two years, the school board learned last night.

Last night, business manager Lisa Blank gave her financial projections for 1993-94 and 1994-95.

Next year, Blank expects revenues of $18.8 million and expenses of $19.7 million which will require a 4.4 millage increase.

The following year revenues and expenditures will increase to $19.1 million and $20.4 million, respectively. Blank is projecting an 8.4 mill increase to offset the difference. Properties are currently assessed at 235 mills.

Blank's estimates are based on several assumptions which include the real estate assessment growing at 2.4 percent, a continued real estate collection rate of 95.7 percent and earned income tax revenue increasing at 4 percent annually. She expects no change in state revenue, but a decrease in federal funding because of a population drop according to census figures.

Next year, local sources are expected to generate $14.5 million for the spending plan. State and federal funding are projected at $4 million and $150,000, respectively.

Further complicating the matter is that some residents have successfully requested a lower reassessment of their agricultural property. That means they will pay lower taxes next year.

"What happens is that as the Act 319 assessments drop, other property owners will pay higher taxes to make up for that drop," said Superintendent Thomas W. Free.

Free said he expects that other property owners will have to pay $10 to $20 more next year to make up the difference.

In other business, the school directors heard a recommendation to consider purchasing a storage bank system for electricity at Palisades Middle School.

Compared to other buildings in the district, the middle school, which opened last year, pays considerably more for electricity because it falls under a different rate structure. At one time, the Public Utility Commission allowed schools to be charged under a cheaper municipal service rate which has since been abolished. While other schools in the district are "grandfathered" into that rate structure, the middle school is charged a new rate.

David Nonnemacher, director of maintenance and operations, said Metropolitan Edison has suggested the storage system which would allow electricity to be stored during off-peak hours. From 11 a.m. to 2 p.m. daily, the heaviest usage of the day for the middle school, the building would draw from that bank.